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Graded telecom entry fee likely

BS Economy Bureau in New Delhi | October 08, 2003 08:27 IST

The group of ministers on telecommunications is considering the option of introducing a graded system of entry fee while moving towards a unified licence regime.

According to senior government sources, while all operators will not be forced into obtaining a single licence to offer all telecom services, it has been suggested that a basic entry fee be charged for migrating to the unified licence regime and an additional fee for each tier of service.

"An operator who wants to remain an Internet service provider will not be forced to take up a unified licence and offer cellular service," a government source said. He said while the ministerial group had agreed to move towards a unified licence, it faced a number of complexities and options.

On the issue of taking penal action against Reliance Infocomm for allegedly violating licence norms, the sources said the matter was being discussed by the ministerial group and a decision would be taken soon.

They said the unification of licence was not being done to cater to the interest of any one corporate entity but for the larger benefit of the telecom sector.

"Today technology is demanding unification of licences. Devices and applications are merging, this requires to be looked at with a different perspective," a senior government source said.

Sources said the group was also discussing whether to compensate cellular operators. Those in favour said the government must compensate for breaking the contractual agreement with cellular operators by ushering in the unified licence regime. Those against said similar things had happened in the paging sector when cellular operators started offering short messaging services.

"Each time a law is made there are sides that lose out. Does that mean we give compensation every time a change is brought about?" the source asked.

The group of ministers is expected to meet on October 12 over the unified licence and to restrict the mobility of basic services providers to short distance charging areas.

Points to ponder

  • GoM set to clear unified licensing, though yet to resolve the complexities.
  • Penalty for licence violation by basic operators being discussed.
  • Compensation for cellular firms also under scrutiny, some ministers are not in favour of the move.
  • Pradip Baijal, DPS Seth and Deepak Parekh will be present at the next GoM meeting.

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